RE: Contracting and Temp Agencies

Subject: RE: Contracting and Temp Agencies
From: Berk/Devlin <armadill -at- earthlink -dot- net>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Mon, 07 May 2001 10:56:36 -0700

At 09:58 AM 5/7/01 -0700, MM Deaton wrote:

FYI my previous post on this issue, eWork ( charges 12%
of revenue to provide 1099 payroll service for independents. Believe me, at
$50 an hour, this fee more than covers the lost billing hours if you do all
of this yourself.

I don't agree that it "more than covers" anything.

In all my approved provider-mediated jobs:
1. I still had to create and submit an invoice and, since I was the one on-site, had to make sure it was signed and routed properly;
2. I still used and paid an accountant to process my taxes and other assorted paperwork;
3. There was some occasional unpleasantness, often occurring toward the end of or after my tenure at any particular client, having to do with getting some invoice paid. The approved providers did not spearhead this effort.

I charge significantly more than $50 per hour. Any approved provider who takes 15% of my rate, given the minimal amount of work the approved provider does for me, is truly a highway robber.

Also, contrary to what Mary implies, you often don't get to PICK your approved provider. That's why they are an approved provider :-( Approved by your potential client, that is. If you are lucky, you get a list from your client. Otherwise, you are handed the name and email address of a single approved provider. You don't wanna go with that provider? No problem, take a job elsewhere.

They will also provide W2 (employer-of-record) services where you are paid
an hourly rate and they pick up the employer side of taxes, offer benefits,
and so on.

Not benefits, usually not for only 15%. You would pay extra for that insurance. And if you take a w-2 with someone else's company, you lose ALL tax benefits of being self-employed. With insurance costing at least $100 per month with a huge deductible, not being self-employed (getting a w-2) costs you a bundle.

But as someone mentioned, you can get decent group rates on health insurance from a variety of organizations.
And, if you are self-employed is 100% tax-deductible before salary as would be medical expenses.

I disagree about getting liability/umbrella insurance. I would hate to lose
my house because I am "certain" no client would ever sue me. It is a small
price to pay for the certainly I would be covered.
Guess you don't live in CA or on a flood plain or where there are tornadoes. Staying alive and more-or-less whole is a continuous process of choosing your risks. Nothing's certain but death and taxes.



~ Emily Berk ~
On the web at *** Armadillo Associates, Inc. ~
~ Project management, developer relations and ~
extremely-technical technical documentation that developers find useful.~


*** Deva(tm) Tools for Dreamweaver and Deva(tm) Search ***
Build Contents, Indexes, and Search for Web Sites and Help Systems
Available now at or info -at- devahelp -dot- com

Sponsored by Information Mapping, Inc., a professional services firm
specializing in Knowledge Management and e-content solutions. See or 800-463-6627 for more about our solutions.

You are currently subscribed to techwr-l as: archive -at- raycomm -dot- com
To unsubscribe send a blank email to leave-techwr-l-obscured -at- lists -dot- raycomm -dot- com
Send administrative questions to ejray -at- raycomm -dot- com -dot- Visit for more resources and info.


Previous by Author: Contracting and Temp Agencies
Next by Author: Re: So you call yourself an architect?
Previous by Thread: RE: Contracting and Temp Agencies
Next by Thread: The cost of independence: WAS Contracting and Temp Agencies

What this post helpful? Share it with friends and colleagues:

Sponsored Ads